[Introduced February 14, 2013; referred to the
Committee on the Judiciary then Finance.]

A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §11-13A-5b, relating
generally to severance taxes collected for privilege of
producing oil or natural gas; setting a baseline of tax
collections; providing for the distribution of funds collected
in excess of that baseline; providing how those funds may be
used; creating the Marcellus Development Account; and defining
terms.Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new section, designated §11-13A-5b, to read as
follows:ARTICLE 13A. SEVERANCE AND BUSINESS PRIVILEGE TAX ACT.§11-13A-5b. Establishing a baseline of tax collections; Marcellus
Development Account; distribution and use;
definitions.
_(a) For fiscal years beginning July 1, 2013, a baseline for
collections of severance tax on the privilege of producing oil and
gas levied by section five of this article that are deposited in the
General Revenue Fund or that are distributed to counties and
municipalities, as provided in section five-a of this article, is
established at $64.8 million.
_(b) The State Treasurer shall apportion any net collections
during the fiscal year of this state in excess of the baseline
specified in subsection (a) of this section as follows:
_(1) Ten percent of the excess shall be deposited and
distributed as provided in section five-a of this article; and
_(2) The remaining balance, after the distribution provided by
subdivision (1) of this subsection, shall be equally divided between
the General Revenue Fund and the Marcellus Development Account
hereby created in the State Treasury and deposited into those fund
accounts. Moneys from the Marcellus Development Account shall
periodically be distributed on a pro rata basis by the State
Treasurer to county commissions of the counties with wells producing
gas from either the marcellus or utica shale, or from both
formations, based on the ratio of that shale gas produced in the
particular county during the state's fiscal year beginning on or
after the effective date of this section has to the total volume of
shale gas produced in the state during that same fiscal year.
Distributions of severance taxes to a county commission pursuant to this subdivision shall be treated as a special revenue of the
county, which is separate and apart from its general revenue, and
may be expended by the county commission only for the cost of
infrastructure projects.
_(c) Definitions. -- For purposes of subdivision (2), subsection
(b) of this section:
_(1) "Construction" means construction, acquisition,
reconstruction, enlargement, improvement and providing furnishings
or equipment.
_(2) "Cost" means, as applied to infrastructure projects, the
cost of acquisition, repair, renovation and construction; the cost
of acquisition of all land, rights-of-way, property rights,
easements, franchise rights and interests required by the county or
municipality for the acquisition, renovation, repair or
construction; the cost of demolishing or removing any buildings or
structures on acquired land, including the cost of acquiring any
lands where buildings or structures may be moved; the cost of
diverting highways, interchange of highways and access roads to
private property, including the cost of land or easement therefor;
the cost of all machinery, furnishings and equipment; all finance
changes and interest prior to and during the construction and for
no more than eighteen months after completion of construction; the
cost of all legal services and expenses; the cost of all plans,
specifications, surveys and estimates of cost; all working capital and other expenses necessary or incident to determining the
feasibility or practicability of acquiring, renovating, repairing
or construction any such project; the financing of the acquisition,
renovation, repair or construction, including the amount authorized
in the resolution of the county commission, or its designee with
statutory to issue revenue bonds, providing for the issuance of
infrastructure revenue bonds to be paid into any special funds from
the proceeds of such bonds; and the financing of the placing of an
infrastructure project in operation, if necessary. Any obligations
or expenses incurred after the effective date of this section by any
county commission or its designee, with the approval of the county
commission, for surveys, borings, preparation of plans and
specifications and other engineering services in connection with the
acquisition, renovation, repair or construction of a project shall
be regarded as a part of the cost of such project and shall be
reimbursed out of the proceeds of infrastructure revenue bonds or
from severance taxes as authorized by this section.
_(3) "Infrastructure project" means a project of a public nature
in this state which the county commission or its designee determines
is likely to foster and enhance economic growth and development in
the area of the county where the project is developed, for
commercial, industrial, community improvement or preservation or
other proper purposes, including, but not limited to, tourism and
recreational housing, land, air or water transportation facilities and bridges, industrial or commercial projects and facilities, mail
order, warehouses, wholesale and retail sales facilities and other
real and personal properties, including facilities owned or leased
by this state or any other project sponsor, and includes, but not
limited to:
_(A) The process of acquiring, holding, operating, planning,
financing, demolition, construction, improving, expanding,
renovation, leasing or otherwise disposing of the project or any
part or interest; and
_(B) Preparing land for construction and making, installing or
constructing improvement on the land, including, but not limited to,
water or wastewater facilities or any part thereof, steam, gas,
telephone and telecommunications and electric lines and
installations, roads, bridges, railroad spurs, buildings, docking
and shipping facilities, curbs, gutters, sidewalks and drainage and
flood control facilities, whether on or off the site.
_(4) "Owner" means all persons having any title or interest in
any property rights, easements and interests authorized to be
acquired by this section.
_(5) "Person" means any public or private corporation,
institution, association, firm or company organized or existing
under the laws of the United States, this state or any other state
or country; a federal or state governmental agency; a political
subdivision; a county commission; lead county or regional economic development authority or corporation designated by the county
commission; municipality; industry; public service district;
partnership; trust; estate; person or individual; and group of
persons or individuals acting individually or as a group or any
other legal entity whatever.
_(6) "Project" means any infrastructure project constructed or
operated or to be constructed or operated by a project sponsor.
_(7) "Project costs" means capital costs, costs of financing,
planning, designing, constructing, expanding, improving, maintaining
or controlling an infrastructure project, the cost of land,
equipment, machinery, installation of utilities and other similar
expenditures and all other charges or expenses necessary,
appurtenant or incidental to these costs.
_(8) "Project sponsor" means any county commission, county or
regional economic development organization, whether a government
agency or nonprofit entity, or other governmental agency or person,
or any combination thereof, including, but not limited to, any
public utility, which intends to plan, acquire, construct, improve
or otherwise develop a project.
_(9) "Wastewater facility" means all facilities, land and
equipment used for or in connection with treating, neutralizing,
disposing of, stabilizing, cooling, segregating or holding
wastewater, including, but not limited to, facilities for the
treatment and disposal of sewage, industrial wastes or other wastes, wastewater, and the residue thereof; facilities for the temporary
or permanent impoundment of wastewater, both surface and
underground; and sanitary sewers or other collection system, whether
on the surface or underground, designed to transport wastewater
together with any associated equipment and furnishings and any
appurtenances and systems, whether on the surface or underground,
including force mains and pumping facilities therefor.
_(10) "Water facility" means all facilities, land and equipment
used for or in connection with the collection and/or storage of
water, both surface and underground, transportation of water,
storage of water, treatment of water and distribution of water all
for the purpose of providing potable, sanitary water suitable for
human consumption and use.

NOTE: The purpose of this bill is to provide a source of
funding for infrastructure projects in those counties that produce
natural gas from the marcellus or utica shale formations. The bill
sets a baseline of tax collections at $64.8 million from oil and
gas. The bill provides that ten percent of those funds collected
in excess of that baseline will continue to be for the benefit of
counties and municipalities. The bill provides that the remaining
ninety percent be deposited equally between the General Revenue Fund
and the newly created Marcellus Development Account. The moneys
from the Marcellus Development Account shall be distributed to
counties based on their pro rata share of the gas produced from the
marcellus or utica shale formations. The bill provides that funds
from the Marcellus Development Account may only be used for
infrastructure projects.